👉 Background: Alphabet is the parent company of Google - the search giant that is the fourth biggest company in the whole wide universe. But the last 12 months have been rough on Google:

• Open AI's ChatGPT has threatened Google's stronghold on search
• The digital advertising market slowed down
• Google had to cut around 12,000 jobs globally.

👉 What happened: But now, Alphabet has announced its results for the first quarter of 2023 - and things are lookin A-OK. Alphabet's revenue rose 3% from the same period last year - largely thanks to Google ads, Youtube Ads and Google Cloud.

👉 What else: Google will also perform a $70 billion USD share buyback… which is always a good sign for investors.

What's the key learning?

💡A share buyback is when a company buys its own stock back from investors on the public market. And, as a result, this means there are now fewer shares available in the public market.

💡For example: if a company earns $100 and there are 100 shares, each share gets $1. But if the company buys back 20 shares from the public market, then there are only 80 outstanding shares. Now each shareholder now gets $1.25.

💡A share buyback can also show that the company believes its own stock is undervalued - and that good times are ahead... So it’s no surprise that Alphabet’s share price jumped 3% after the announcement.